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In a previous post we discussed the increased competition from Chinese companies selling directly to consumers on Amazon and eBay: Is Your Chinese Supplier Now Your Competitor on Amazon?
As we said in that post… “While some who sell products on Amazon and eBay are discounting, or downright ignoring, this trend – be advised – this is not a mere rumor! We know for a fact that Amazon is soliciting manufactures in China to import products directly to the US, because they have solicited us in China, as well as many of our factories and friends who do business there. Amazon has a team that goes to the factories and suppliers in China and solicits them to sell to consumers on Amazon US.” (Forgive us for quoting ourselves!)
With that in mind, you must be wondering how can we possibly say that you have “the advantage” when competing with companies who import products directly from China.
Advantages of Being a Local Private Label Supplier
There may have been a time when all a private label product seller had to do was to source cheap products from China and place a listing on eBay to sell out and make money in their sleep (though, having been in the product importing business for more than 35 years, we’re not sure when that was). And, while many still believe in this fantasy, the increasingly competitive nature of the global product marketplace should quickly disabuse them of that – once they actually try to sell their products online.
To be a successful private labeler in the 21st Century means focusing on the advantages listed below:
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- Knowing your market: Find the “Perfect Product” and import quickly and inexpensively from China to the US market.
- Logistical advantage: Manage logistics effectively, such as consolidating freight and breaking it into smaller shipments for easier distribution, once it arrives in the U.S.
- Maintain quality: Quality control is huge in the US market, and of critical importance to US consumers. Knowing this, it is your job to make sure your customers receive only the highest quality products.
- Quick turnaround: Being “local”, you are able to ship orders quickly and efficiently to your customers.
- Cultural advantages: You know how important accurate product descriptions are to the US consumer. Take great photos and videos of your products, with attractive packaging, and generate accurate descriptions of your products.
- Multiple sales funnels: Advertise and market your products on a variety of platforms, including: listing products on Amazon, eBay, and your own website, managing PPC campaigns, and manage display advertising.
- Stellar customer service: In the US market, customer service is often more important than product quality and price. Take care of customer inquiries quickly and efficiently, via email and telephone, and process warranty claims in a timely fashion.
BONUS NOTE: Chinese Suppliers have ONE advantage over you – just ONE – and that is price. Because they sell directly from the factory to the consumer, their overhead is lower. But, in virtually every other area of online product sales, you have the advantage as a local, US-based online product seller. Sourcing products and placing them on Amazon while providing sub-par customer service with poor photographs and product descriptions may have worked in the past, and may continue to work in the short term. However, in the long-term, the expectations by consumers of private label product sellers will grow enormously.
Knowing this, you should also know that, indeed, you DO have the advantage as a US-based Amazon retailer.
If you’re looking for the help you need to compete in today’s global marketplace, with the perfect product to sell online against global competition, contact us today!
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